The US stock market gave back last week almost all the gains it had achieved over the first 4 months of the year.  Trading began on Monday (5/03/10) with fears that Greece could default on its sovereign debt and just how significant the ripple effect would be worldwide.  The bailout package worked out by the European Central Bank and the International Monetary Fund totaled more than $140 billion, an amount equal to a staggering 40% of the size of the Greek economy.  The week ended with almost unexplainable volatility on Wall Street.  In a 6 minute span on Thursday (5/06/10) afternoon, the S&P 500 fell 5%, recovering some but not all by day's end.  By the close of trading for the week, the stock index had fallen 6.3% (total return), dropping its YTD gain to just +0.3% (source: BTN Research).      
 
Employers were hiring in April 2010, adding +290,000 new workers nationwide.  The total was the largest monthly jobs gain since March 2006.  The Senate continues to make progress, albeit slow, on financial regulatory reform.  The Democrats compromised on the way to handle future "too big to fail" firms, possibly looking for reciprocation from the Republicans on derivatives reform (source: Department of Labor, Senate). 
 
The origins of Greece's financial woes are well documented: overpromising by a government in the areas of benefits and services and the use of massive amounts of leverage.  After the "bailout" dust settles, the required medicine in Athens will likely be major cost cutting and higher taxes.  Washington politicians from both political parties would be well served to watch how this crisis plays out (source: BTN Research).